Hyderabad NCLT Initiates Corporate Insolvency Resolution Process Against Tata Projects Ltd

The National Company Law Tribunal of Hyderabad has recently initiated Corporate Insolvency Resolution Process against Tata Projects Limited for its failure to pay back legally-established dues to the applicant herein, Nexo Industries Pvt Ltd.The tribunal comprising Dr. Venkata Ramakrishna Badharinath Nandula and Veera Brahma Rao Arekapudi was dealing with an application moved by Nexo Industries, the operational creditor alleging that the Tata Projects had failed to pay its operational debt."It is trite to say that establishment of legally enforceable debt and default in payment of the said debt by the corporate debtor is the sine qua non for setting the corporate insolvency resolution processing motion against the corporate debtor."Advocates Damodhar Mundra and Mayur Mundra filed the application under Section 9 of the Insolvency and Bankruptcy Code seeking initiation of Corporate Insolvency Resolution Process contending that the corporate debtor had failed to discharge its debt of over 44 lakhs.The applicant argued that it had supplied several materials including bolts and washers to the corporate debtor under various invoices on different dates. The counsels on behalf of Nexo Industries produced these invoices and purchase orders which had not been paid by the Tata group company.It was also pointed out that the company even failed to reply to the statutory notice issued under the Code. However, Tata Projects in its written submissions contended that it was not insolvent. It was argued that the payment was not done since it was a disputed debt and that they did not have any liability towards the applicant. The tribunal allowed the application upon finding that a legally enforceable debt was established in the case and appointed Mr K. Krishna as Interim Resolution Professional for Tata Projects.Case Title: M/s Nexo Industries Pvt Ltd v. M/s Tata Projects Ltd.Click Here To Read The Order

Hyderabad NCLT Initiates Corporate Insolvency Resolution Process Against Tata Projects Ltd

Hannah M Varghese

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